Fresh-Keeping Effort and Channel Performance in a Fresh Product Supply Chain with Loss-Averse Consumers’ Returns
Joint Authors
Gu, Bojun
Fu, Yufang
Li, Yanling
Source
Mathematical Problems in Engineering
Issue
Vol. 2018, Issue 2018 (31 Dec. 2018), pp.1-20, 20 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2018-07-11
Country of Publication
Egypt
No. of Pages
20
Main Subjects
Abstract EN
We consider a fresh product supply chain consisting of one fresh product supplier and one e-tailer.
Supplier sells fresh products through e-tailer in an online market, and the e-tailer offers a full-refund return policy to loss-averse consumers and exerts a fresh-keeping effort to keep the product at the optimum freshness level.
By developing an analytical model, we derive the optimal price, quantity, and fresh-keeping effort jointly and verify that it is unique in the centralized setting.
Based on the comparison, we demonstrate that the e-tailer’s profit is greater with fresh-keeping effort than without it; therefore, the e-tailer has an incentive to engage in fresh-keeping effort.
We also show that the return rate is independent of the fresh-keeping effort and consumers’ loss aversion.
In the decentralized setting, we first characterize the optimal wholesale price by the numerical study and then find that although the buyback contract still works, the revenue-sharing contract fails to achieve channel coordination under our model formulation.
Furthermore, we develop a revenue- and cost-sharing contract that can coordinate the supply chain by designing a new contractual mechanism.
Our numerical studies offer the Pareto improvement regions under the buyback and revenue- and cost-sharing contracts in which the supplier and e-tailer can earn more expected profits compared with being under wholesale price contract.
American Psychological Association (APA)
Gu, Bojun& Fu, Yufang& Li, Yanling. 2018. Fresh-Keeping Effort and Channel Performance in a Fresh Product Supply Chain with Loss-Averse Consumers’ Returns. Mathematical Problems in Engineering،Vol. 2018, no. 2018, pp.1-20.
https://search.emarefa.net/detail/BIM-1207640
Modern Language Association (MLA)
Gu, Bojun…[et al.]. Fresh-Keeping Effort and Channel Performance in a Fresh Product Supply Chain with Loss-Averse Consumers’ Returns. Mathematical Problems in Engineering No. 2018 (2018), pp.1-20.
https://search.emarefa.net/detail/BIM-1207640
American Medical Association (AMA)
Gu, Bojun& Fu, Yufang& Li, Yanling. Fresh-Keeping Effort and Channel Performance in a Fresh Product Supply Chain with Loss-Averse Consumers’ Returns. Mathematical Problems in Engineering. 2018. Vol. 2018, no. 2018, pp.1-20.
https://search.emarefa.net/detail/BIM-1207640
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1207640